Tycoon Njoroge Njuguna Fails to Stop KCB Bank from Auctioning His Firm’s Assets

In a dramatic legal showdown, controversial road construction magnate Tycoon Njoroge Njuguna has lost a desperate bid to save his company from the auctioneer’s hammer.

The High Court has ruled that Nyoro Construction Company, owned by Njuguna, must face the consequences of defaulting on a staggering Sh860 million loan.

Despite his claims of partial repayment and unfair delays by the government, the court found no reason to shield the firm.

The judgment marks a sharp fall for a businessman who once rode high on multi-billion-shilling state contracts.

KCB, in its opposition, revealed that despite some repayments totaling Sh278.4 million, the firm still owed the bank a crushing Sh860.4 million.

Court Dismisses Tycoon Njoroge Njuguna’s Plea to Stop Auction

Tycoon Njoroge Njuguna, once celebrated for clinching lucrative road construction deals during the Kibaki and Uhuru regimes, is now battling to retain ownership of his crumbling empire.

His firm, Nyoro Construction Company, had gone to court pleading with Justice Peter Mulwa to stop KCB Bank from selling off its assets. These included four prime land parcels used as collateral for a Sh267 million loan borrowed in September 2005.

Njuguna told the court he had already paid Sh391 million, exceeding the original loan. He blamed the firm’s default on delayed payments by the government, arguing it was unfair for the bank to proceed with the auction.

But the judge was unmoved. In a damning ruling, Justice Mulwa declared that Nyoro Construction had failed to meet its financial obligations. The court ruled that KCB had every legal right to sell the securities, noting that equity does not aid defaulters.

“It is undisputed that Nyoro Construction acknowledges its indebtedness and has defaulted in repayment. The bank, as chargee, is entitled to realise the securities,” said the judge.

The company had already been granted a temporary reprieve in 2023 when the court blocked the auction—on the condition it paid Sh200 million within 14 days. Njuguna defaulted again, and KCB swiftly returned to court, asking the court to lift the injunction. The judge agreed.

“Given these circumstances, entertaining the instant application would be both duplicative and oppressive to the bank,” Justice Mulwa ruled.

KCB, in its opposition, revealed that despite some repayments totaling Sh278.4 million, the firm still owed the bank a crushing Sh860.4 million.

From Billion-Shilling Projects to Financial Collapse

In its prime, Nyoro Construction was among the most sought-after road contractors in Kenya. The company handled major government infrastructure projects worth Sh6.7 billion, including:

• Processional Way in Nairobi

• Likoni Road Missing Link and Bridge

• Nakuru-Njoro-Mau Summit Road

• Rehabilitation of Nakuru Town Roads

• Road projects across Murang’a County

These projects placed Njuguna’s firm among the elite class of politically connected contractors. Yet behind the scenes, court papers show a firm spiraling into debt, unable to sustain repayments on borrowed millions.

Industry insiders say Njuguna’s fortunes began to decline after the end of the Uhuru Kenyatta era, as newer players were awarded contracts under the Ruto administration.

The delays in state payments Njuguna blames may have been part of the broader realignment of business interests. Despite mounting debt, Njuguna continued to fight tooth and nail to keep his properties from being auctioned, even appealing to the Court of Appeal to stop KCB. That too failed.

The appeals court dismissed the application, stating that Nyoro Construction’s reputation did not outweigh its financial failure. The ruling opened the final path for KCB Bank to auction the company’s assets.

Tycoon Njoroge Njuguna Faces Harsh Reality

The downfall of Tycoon Njoroge Njuguna is more than a personal tragedy—it is a reflection of how political winds can shift rapidly in Kenya’s construction sector.

Once hailed for delivering quality infrastructure, Njuguna’s business is now collapsing under the weight of bad loans, poor planning, and an over-reliance on state contracts.

Experts warn that many similar companies that rose through political favor rather than financial prudence could face the same fate.

As of now, KCB is free to auction the company’s assets—marking a humiliating end for a businessman who once commanded influence at State House and the Ministry of Transport.

The court’s firm stance sends a clear message: big names and past glory do not excuse current debts.